Limited scope of operations in a competitive government services market. Solid margins for a service provider with a balance of fixed-price and cost-plus contracts, as well as improving cost controls. Concentrated customer base. Somewhat smaller than many government service provider peers. Leverage likely to stay high as the company pursues further debt-financed acquisitions. Low capital spending requirements. S&P Global Ratings' stable outlook reflects its expectation that Peraton Corp.'s leverage will remain high. Although we expect credit ratios to improve modestly over the next 12-24 months with earnings growth and debt repayment, we do not expect debt to EBITDA to go below 5x for an extended period due to the likelihood of further dividends or debt-financed acquisitions as a result of
